Financial reports - Closing

3 important questions on Financial reports - Closing

Where are revenue and expense accounts (temporarily) transferred during the closing process?

Income Summary

How is the Dividends account closed?

Straight to Retained Earnings (RE debited; Dividends credited)

Two major measures of liquidity:

Working capital (Current assets - current liabilities)
Current ratio (Current assets : current liabilities)

The question on the page originate from the summary of the following study material:

  • A unique study and practice tool
  • Never study anything twice again
  • Get the grades you hope for
  • 100% sure, 100% understanding
Remember faster, study better. Scientifically proven.
Trustpilot Logo